If I hit min. retirement age(disability annuity) in June '23 do I answer Y or N to the question "Were you under min. retirement age when you received this distribution?"

Forum|Forum|2 years ago
January 19, 2024
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I receive an annuity from my employer because of permanent disability, and I was disabled and started getting the payments before hitting minimum retirement age, but in June 2023 I hit the minimum retirement age.

TurboTax Deluxe Online

Best answer by dmertz

For proper treatment on your tax return by TurboTax, would need to split the Form 1099-R into two, one for the portion received before the minimums retirement age on and the other for the portion received after minimum retirement age so that only the portion received before minimum retirement age is treated as a substitute for wages.

AbrahamT

You most likely are referring to Code 3, Box 7 when entering the 1099R input for this annuity. The answer is that you

would enter yes to this question. You see disability distributions received before the minimum retirement age are treated as wages and are treated slightly differently on the tax return. You would need to ask the plan administrator what the minimum age of the plan is. See here for more detail.

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